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Danger of Running With the Yuan Bulls

This was the weekend yuan bulls had been waiting for. Yet those betting on the Chinese currency with an exchange-traded fund will need a bigger surprise from Beijing.

Before China pledged Saturday to make the yuan more flexible, many investors had piled into the WisdomTree Dreyfus Chinese Yuan Fund (ticker symbol: CYB), an ETF designed to give "exposure" to the currency. CYB's total assets rose to $760 million at the end of May from $102 million at the same point in 2009, according to Morningstar.